(See section 31)
PROFESSIONAL MISCONDUCT IN RELATION TO MEMBERS OF THE INSTITUTE IN PRACTICE
An Actuary in practice shall be deemed to be guilty of professional misconduct, if he-
(1) allows any person to practice in his name as an actuary unless such person is also an actuary in practice and is in partnership with or employed by himself; or
(2) pays by way of remuneration to an employee, pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner; or
(3) enters into partnership with any person other than an Actuary in practice or a person resident outside India who but for his residence abroad would be entitled to be admitted as a member under clause (c) of sub-section (1) of section 6 or whose qualifications are recognised by the Central Government or the Council for the purpose of permitting such partnership, provided the Actuary shares in the fees or profits of the business of the partnership both within and outside of India; or
(4) secures either through the services of a person who is not an employee of such Actuary or who is not qualified to be his partner or by means which are not open to an Actuary, any professional business; or
(5) accepts an assignment as Actuary previously held by another Actuary without first communicating with him in writing; or
(6) charges or offers to charge, accepts or offers to accept in respect of any professional employment fees which are based on a percentage of profit or which are contingent upon the findings or results of such employment, except as permitted under any regulation made under this Act; or
(7) engages in any business or occupation other than the profession of Actuaries unless permitted by the Council so to engage: Provided that nothing contained herein shall disentitle an Actuary from being a director of a company; or
(8) accepts a position as an actuary previously held by some other Actuary in practice in such conditions as to constitute undercutting; or
(9) allows a person not being a member of the Institute in practice, or a member not being his partner to sign on his behalf or on behalf of his firm, any valuation report or financial statement; or
(10) discloses information acquired in the course of his professional engagement to any person other than his client so engaging him, without the consent of such client, or otherwise than as required by any law for the time being in force; or
(11) certifies or submits in his name, or in the name of his firm, a valuation report or a financial statement unless the examination of such statement and the related records has been made by him or by a partner or an employee in his firm or by another Actuary in practice; or
(12) expresses his opinion or valuation reports or financial statements of any business or any enterprise in which he, his firm, or a partner in his firm has a substantial interest, unless he has disclosed the interest also in his report; or
(13) fails to disclose a material fact known to him in a valuation report or a financial statement, but disclosures of which is necessary to make the valuation report or the financial statement not misleading where he is concerned with such valuation report or the financial statement in a professional capacity; or
(14) fails to report a material misstatement known to him to appear in a valuation report or financial statement with which he is concerned in a professional capacity; or
(15) is grossly negligent in the conduct of his professional duties; or
(16) fails to obtain sufficient information to warrant the formation of an opinion in regard to any matter contained in any valuation report or financial statement prepared by him or on his behalf; or
(17) fails to invite attention to any material departure from the generally accepted procedure or professional work applicable to the circumstances, in any valuation report or financial statement prepared by him or on his behalf.
PROFESSIONAL MISCONDUCT IN RELATION TO THE MEMBERS OF THE INSTITUTE IN SERVICE
A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional misconduct, if he being an employee of any company, firm or person,-
(1) pays or allows or agrees to pay directly or indirectly to any person any share in the emoluments of the employment undertaken by him; or
(2) accepts or agrees to accept any part of fees, profits or gains by way of commission or gratification; or
(3) discloses confidential information acquired in the course of his employment except as and when required by law or except as permitted by his employer.
PROFESSIONAL MISCONDUCT IN RELATION TO MEMBERS OF THE INSTITUTE GENERALLY
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct, if he-
(1) includes in any statement, return or form to be submitted to the Council any particulars knowing them to be false; or
(2) not being a fellow member of the Institute acts himself as a fellow member of the Institute; or
(3) does not supply the information called for or does not comply with the requirements asked for by the Council or any of its Committees; or
(4) contravenes any of the provisions of this Act or the regulations made thereunder or any guidelines issued by the Council under clause (i) of sub-section (2) of section 19; or
(5) is guilty of such other act or omission as may be specified by the Council.
OTHER MISCONDUCT IN RELATION TO MEMBER OF THE INSTITUTE GENERALLY
A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if-
(A) (1) he is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term not exceeding six months;
(2) in the opinion of the Council, he brings disrepute to the profession or the Institute as result of his action whether or not related to his professional work;
(B) he is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term exceeding six months.
This clause to the Act seeks to define professional misconduct and categorises the misconduct into three parts such as professional misconduct in relation to (1) Members of the Institute in practice, (2) Members of the Institute in service and (3) Members of the Institute generally. (Notes on Clauses).
Actuaries Act, 2006
Categories: Statutory definitions